Zomato Swiggy vs Flipkart: There was a time in India when you had to go to the market for everything. But now everything is delivered to your home. Currently, the market is competing on this basis. After India’s fastest online delivery platform ‘Quick Commerce’, now the competition for food delivery is intensifying. Walmart-owned Flipkart is now entering the food delivery space to make its mark. It is preparing to launch its food delivery service in Bangalore by August 15. It has also started integrating restaurants in the city. So now a new competitor is entering the field to compete with Zomato – Swiggy ( Zomato Swiggy vs Flipkart ) .
According to media reports, the company is offering a commission rate of around 10 percent to attract restaurant partners. This rate is significantly lower than the 16-30 percent commission charged by the existing platforms. With this launch, Flipkart will formally enter a market that has long been dominated by Zomato and Swiggy. But recently, the market is witnessing a major upheaval after Rapido’s aggressive strategy with ‘Ownly’.
Delivery will start through ONDC
Unlike traditional food delivery platforms, Flipkart is taking a different approach. The e-commerce giant is building its food delivery service on the government-backed Open Network for Digital Commerce (ONDC). This means that instead of creating a closed marketplace from scratch, the company will be leveraging the benefits of this open network. The company had earlier said that it would pilot the service before expanding it nationally.
The competitive environment is more intense
For existing competitors, the competitive environment is getting more intense. Swiggy recently questioned the long-term sustainability of its ultra-low commission model, arguing that delivery platforms incur operational costs. Rapido, on the other hand, says that the food delivery market in India needs a structural change, which will significantly reduce take rates (commissions) for restaurants.
Flipkart’s entry has added another capitalist competitor to the mix, potentially putting pressure on prices at a time when the sector seemed to be stabilized under the dominance of two big players. But Flipkart is shattering that illusion.